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Mobilization for energy renovation
Innovative tools for the uptake of deep renovation of the existing building stock based on behavioural insights Victoria Taranu, promoter dr. ir. Griet Verbeeck Faculty of Architecture and Arts, Hasselt University
PROBLEM STATEMENT
OBJECTIVES
5 out of 10 houses in Flanders were built before 19701
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There is an increase in research and public policies based on methodologies
from behavioural making.
In the context of climate change it is a priority to reduce the energy demand and shift to renewable sources of energy
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economy that focus on peripheral, less conscious decision
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The research will verify the efficiency or inefficiency of nudging and other methods regarding irrational decision making in boosting deep energy renovation.
The measures taken for the uptake of deep energy renovation have lower impact than expected due to various reasons, one being that these policies treat
Nudging is not an alternative to the traditional behavioural change models, but rather a catalyst. Subsidies and incentives aim to eliminate the objective external factors, the campaigns aim to fill in the informational and attitudinal gap. These are tools to influence the cognitive decision making, whilst nudging will contribute to the parallel peripheral, less conscious message processing.
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Flanders has a big potential of home renovation due to a high rate of home ownership (70%). The vast majority of Flemish acknowledge the importance of energy efficiency, 65.5% of dwellers considers it very important and 30.0% rather important1.
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the dwellers as a
rational decision maker.
The Elaboration Likelihood Model by Cacioppo3 stipulates two routes through which messages are processed: central processing (effortful deliberation) and peripheral (less conscious).
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Firstly will be analyzed the technological and socio-economic context of Flanders. With this background, we will translate behavioural insights into effective tools and methods for public and NGO campaigns. In order to be efficient, these tools must be elaborated with a solid analysis of specific technological, social and normative factors that impede deep energy renovation nowadays. ◾
The gap between intention and action has to be filled not only with information and sensitization campaigns that influence rational decision making.
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METHODOLOGY
1 out of 10 houses was renovated in the last 10 years2
Analysis of the status quo, the of the Belgian renovation market ◾
lock-in solutions
Analyze the European, national, regional and local normative framework
Demand side Management approach: identification out of all sustainable solutions the ones to be promoted as an alternative or as an upgrade of the existing common practices
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Analyze existing socio-economic and socio-demographic data from national surveys with focus on building dweller
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Categorize the existing campaigns on energy renovation according to Behavioural Change Models
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Elaborate questionnaires and interviews to tackle the socio-economic (objective) and attitudinal (subjective) impediments in choosing specific energy-efficient technologies in building renovation
Determine the weaknesses and the strengths of existing policies under the optics of behavioral insights
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Define in collaboration with Living Labs different levels of renovation and certain packages, rather than single technological solutions to be promoted
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Technological approach
Public policy
Sociological approach
INTENTION
GAP BETWEEN ACTION Innovative behavioural change
Traditional behavioural change DWELLER AS A RATIONAL DECISION MAKER Alternative Behavioural Models to the traditional Expected Utility Model
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DWELLER AS A PREDICTABLY IRRATIONAL DECISION MAKER Apply behavioural economy methods (dweller as a predictably irrational decision maker) as alternative to traditional behavioural change methods (dweller as a rational decision maker).
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Information Deficit Models
Variations of the Expectancy Value Theory that take into consideration values, beliefs, attitudes, habits, emotions, self effiicacy of the individual. ◾
Incentives or informational and sensitizing campaigns based on these Models did not have the expected impact. ◾
According to Amos Tversky’s Judgement Heuristic Theory, when the decision is taken under uncertainty, time pressure, or under heavy cognitive load like in the case of house renovation, often ◾
prevail intuitive responses that are ◾
shortcuts
to the cognitive processing3.
Even though some choices are less rational, they are not random but follow certain patterns,
the
behavioural insights5.
Elaborate innovative methods of nudging based on behavioural insights in the context of energy renovation of Belgian existing building stock.
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Elaborate energy calculators, applications based on personalized output of smart meters in order to simplify the cognitive load in the decision making process or monitor the outcomes of the renovation (gamification).
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TESTING THE TOOLS Once elaborated, the traditional and innovative tools will be tested in the following Flemish Living Labs: ◾ ◾ ◾
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Collective nudging- treating the dweller as part of a community rather than individual.
Werfgoed Ecoren Mutatie+
In these real life case experiments with dwellers nudges will be compared to control groups in order to evaluate their impact. Another aspect to be verified is whether the response to nudges is influenced by socio-economic factors such as gender, income, age, ethnicity, etc. The statistical results will prove the efficiency or inefficiency of the elaborated tools and methods. It will allow us to outline behavioral trends and efficient methods of implementation of deep energy renovation.
REFERENCES
1 Ceulemans , W., & Verbeeck, G. (2015). Grote Woononderzoek 2013 Deel 6. Energie. 2 TABULA. (2012). Application of Building Typologies for Modelling the Energy Balance of the Residential Building Stock. 3 Andrew Darnton. (2008) Reference Report: An overview of behaviour change models and their uses GSR Behaviour Change Knowledge Review 4 Momsen, K., & Stoerk, T. (2014). From intention to action: Can nudges help consumers to choose renewable energy? Energy Policy 5 Behavioral Insight Team, t. (2011). Behaviour Change and Energy Use. UK Department of Energy and Climate Change. Images: 1 http://cdn.business2community.com/wp-content/uploads/2013/02/657652_thumbnail.jpg
BEHAVIOURAL INSIGHTS Loss aversion people prefer avoiding losses to acquiring gains Anticipated regret aversion (FOMO Fear Of Missing Out)
Uy, my neighour will pay less for heating, I also want!
people do not wish to miss out on a good offer that others are taking advantage of
Discount the future reward in the future.
a smaller reward today is preferred over a larger
Social norms people are heavily influenced by what others are doing. Defaults individuals tend to go with the flow of pre-set options. Prompted
choices are a milder cousin of formal defaults.
Anchoring tendency to rely too heavily on the first piece of information of-
fered (the anchor), tendency to evaluate persons or objects based on perceived value instead of objective data
Mental accounting people think of money as sitting in different “mental
accounts” such as savings or expenses, money for fuel, for social causes, etc. If they receive the Winter Fuel Payment, they are 14 times more likely to spend them on fuel.5
